Deutsche Bank executes the first two-way Renminbi cash sweep in Shanghai under PBoC’s nationwide cross-border scheme


Deutsche Bank’s Global Transaction Banking division today announced that it has successfully executed the first two-way Renminbi (‘RMB’) cash sweep in Shanghai since PBoC’s RMB cross-border pilot was extended nationwide in November 2014 (circular PBoC [2014] No. 324).

Deutsche Bank’s client – Koninklijke DSM NV (‘DSM’) – is a global science-based company active in the health, nutrition and materials sectors.

Anthony Lin, Head of Corporate Bank and Trade Finance & Cash Management Corporates in China at Deutsche Bank, said: “We are proud to be the first bank to execute a cross-border sweep in Shanghai under PBoC’s nationwide RMB cross-border scheme. By using Deutsche Bank’s automated solution, DSM will be able to set target balances for better liquidity management at a group level. At the same time, the stable source of RMB liquidity can provide a natural hedge for its offshore RMB transactions, thereby creating additional cost efficiencies. We look forward to expanding our relationship with DSM.”

Vivian Huang, Regional Treasurer China at DSM, added: “We are delighted to be working with Deutsche Bank in China. The Bank’s two-way cross-border RMB cash pooling solution will likely enable us to maximise our liquidity utilisation, enhance intra-company financing and reduce external borrowing costs, which should greatly benefit our global business.”

As the world’s leading FX franchise, Deutsche Bank is committed to the development of RMB solutions through all facets of foreign exchange, capital markets, credit trading and transaction banking. The Bank was the first to allow electronic execution of RMB trading via its online trading platform Autobahn FX, currently offering live 24×5 CNH pricing. Deutsche Bank also launched the first investable CNH bond index, and was among the first to execute onshore RMB FX option trades, CNH cross-currency swaps, and CNH forwards. Deutsche Bank’s dedicated CNH trading desk manages a significant amount of daily trading volumes, while regular, dedicated research (Deutsche Bank’s Offshore RMB Market Monitor and China Market Perspectives) serves to keep investors and corporates informed on the latest developments and trends shaping the market.

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